Complete Startup Lifecycle Goes Onchain: Transform Your Business Now
- Brian Armstrong proposes moving startups' entire lifecycle onto the blockchain, including incorporation, fundraising, and going public. The plan includes instant capital raises in USDC and tokenized equity for public listings. Onchain fundraising, facilitated by Coinbase's acquisition of Echo, aims to make capital formation more efficient and transparent. Regulatory discussions are ongoing to expand access beyond accredited investors, promoting broader participation in early-stage funding. JPMorgan estimates a $34 billion market opportunity in Coinbase's Layer-2 blockchain, Base, with potential token launches paving the way for substantial growth.
Coinbase CEO Brian Armstrong has introduced an ambitious vision: a completely onchain startup lifecycle that streamlines key processes-from incorporation to going public. Speaking on the TBPN podcast, Armstrong explained his idea that founders could incorporate, raise seed funding, receive instant USDC capital, and eventually list on exchanges through tokenized equity, all facilitated by blockchain technology.
“You can imagine this whole life cycle coming onchain,” Armstrong said, emphasizing that such a transition could significantly increase the number of startups seeking to raise capital worldwide. This could democratize access to funding, reduce reliance on traditional banking and legal systems, and enable instant transactions through smart contracts.
Streamlining fundraising and expanding accessArmstrong pointed out that current fundraising processes are often cumbersome, calling for more efficient and transparent means. Coinbase's recent acquisition of the fundraising platform Echo aims to serve this purpose. Echo has helped over 200 projects raise upwards of $200 million, and while it will initially operate independently, it will eventually integrate with Coinbase's broader ecosystem. This integration will unlock access to Coinbase's half-trillion dollars in custody assets and a global pool of investors.
Coinbase shares closed Friday up by approximately 10%. Source: Google FinanceIn addition to improving fundraising efficiency, Coinbase is engaging with U.S. regulators to facilitate broader access to onchain funding opportunities. Armstrong highlighted that current rules restrict many retail investors from participating in early-stage investments, which he considers unfair. The company aims to find a balance that enhances consumer protection while expanding access to a wider investor base.
Market potential in Coinbase's Layer-2 blockchainJPMorgan Chase has recently upgraded Coinbase's stock rating to“Overweight,” citing promising growth prospects for its Layer-2 blockchain network, Base. The bank estimates that a potential launch of a Base token could generate a market opportunity between $12 billion and $34 billion. Analysts believe that Coinbase's share of this market could range from $4 billion to $12 billion, underscoring the platform's strategic importance in the evolving crypto markets and DeFi landscape.
As Coinbase continues to expand its blockchain infrastructure, it is positioning itself at the forefront of crypto regulation and market growth-further pushing the integration of traditional finance and emerging blockchain innovations.
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